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The ad-supported version of Netflix will launch on November 3 for $7/month

The release date for Netflix's ad-supported tier has been announced, and with it, the limitations that users will face in exchange for a cheaper monthly subscription. On November 3 at 12 PM Eastern, the new "Basic with Ads" plan will be available for $7 monthly. The United States, the United Kingdom, Australia, Brazil, Canada, France, Germany, Italy, Japan, Mexico, South Korea, and Spain are among the initial 12 countries where it will be broadcast.

Beyond the four or five minutes of commercials per hour, there are other concessions. Certain movies and TV shows won't be available to you due to licensing restrictions, and you'll be restricted to a "720p/HD" resolution maximum. Netflix has promised that it is "working on" removing the ban on that type of content. Also, you can't save videos to your device to watch later, so if you want to have something to watch on your next flight, you'll have to upgrade to a paid plan.

The advertisements will initially run for 15 to 30 seconds and air both before and during the shows. Those advertisements will be targeted at a "broad" audience based on factors like location and the types of content you typically consume. Nielsen's digital rating service is also monitoring the effectiveness of these commercials in the United States.

Therefore, there are still many reasons to go with a more expensive strategy. Netflix, however, thinks this will open up the service to even more people than before. It's inevitable to some degree. Netflix has been experiencing a decline in subscribers in recent quarters, but introducing a free ad-supported tier might help stem the tide.